The Rimba Raya Biodiversity Reserve REDD Project

Table 36. Assessment of risk factors applicable to all VCS AFOLU projectsRiskFactorProject RiskRisk ofunclear landtenure andpotential fordisputesRisk offinancialfailureRisk oftechnicalfailureRisk ofmanagement failureEconomic RiskRisk of risinglandopportunitycosts thatcausereversal ofsequestration and/orprotectionLikelihood(L)Significance(S)Mitigation(C)MitigationSystem(M)TotalRisk(R)RiskRating0 3 4 4 0.0000 Low0.3333 3 3 4 0.2500 Low0.05 1 4 4 0.0000 Low0.1333 2 3 4 0.0667 Low0 2 4 4 0.0000 LowInfiniteEARTH Rimba-­‐Raya ProjectInfiniteEARTH will hold an Ecosystem Restoration Concession License overthe project zones and area. This license will provide InfiniteEARTH usagerights for a period of up to 60 years with an option to renew for an additional30 years beyond that.The project proponents have fully funded the development costs of theproject up to and including the land-­‐use rights acquition, project certificationand the first years operating budget. Additionally, they have pre-­‐sold the first2 years vintages (flexible volume), which ensures a fully funded operationalbudget for years two and three.No new technologies will be introduced that play a significant or vital role inthe implementation of activities on the ground. Forest protection andmonitoring activities on the ground invoke best practices from otherprotected and conservation areas utilized in other parts of Indonesia andinternationally. Thus, risk of technical failure is low.InfiniteEARTH has established an experienced management team at theexecutive, managerial and operational field levels. Where key staff positionsare not currently filled, a systematic plan for role and function of theremaining positions has been identified and the persons responsible forthose duties in the interim period has been assigned. Apart from its coreteam, InfiniteEARTH has secured either partnerships or contractualagreements with relevant NGOs and expert consulting firms to support itscore staff.Although rising land opportunity costs are expected to rise with the price ofOil Palm, the land tenure agreement held by InfiniteEARTH over the RimbaRaya area gives rights to the land for a period of up to 60 years with theopportunity to renew for an additional 30 years beyond that. While thegovernment does have the right to to cancel Ecosystem RestorationConcession Licenses, such cancelations can only result from evaluations ofperformance and a lack of compliance with required environmental impactassessments. Land opportunity costs are not a basis for license cancelation.226